In my practice, I see this scenario all the time: an employee leaves to work for a competitor, the employer realizes that its non-disclosure (NDA) or non-compete agreement was inadequate to protect it from what just happened, so the company rolls out a new…
Texas’ recent amendments to its trade secrets statute made it the most comprehensive and modern statute in the nation. It is the only statute in the nation that addresses when a competitor can be excluded from the courtroom to prevent disclosure of trade secrets during the lawsuit.
In this state, the consideration must have a “reasonable relationship” to the employer’s interest in restraining the employee from competing. Simply restricting an employee from lawful competition for the sake of preventing competition will almost certainly fail.
At a bare minimum, all businesses should have a standard confidentiality (non-disclosure) agreement for its employees, vendors, investors, and anyone else who has access to the business’s trade secrets.
Before filing a trade secrets case or in the early stages of such case, a company bringing a lawsuit should always consider the following questions: (1) what damages did we suffer? (2) how do we calculate such damages? (3) how do we prove the damages in court?
Until there is a ruling from the Texas Supreme Court resolving the issue of whether noncompete agreements must contain an express geographical limitation, to be safe, companies should include such limitation in the agreements in additional to any limits on client solicitation. Stay tuned to learn how the Texas Supreme Court rules on this issue.
The top five legal mistakes that startups make that often cause them to fall apart or get bogged down in a legal dispute before they even start making money.
Non-Disclosure Agreements with employees are useful only if employees understand them and know the consequences of breaching them.
It is a well-known fact that when the economy improves, employee mobility rises as well. The most valuable employees – those with a specialized skill set and many years of experience in a particular industry – tend to stay within that industry while moving among…
On Friday, President-elect Donald Trump named Alabama Sen. Jeff Sessions as his pick for the next Attorney General. Sessions is a former U.S. attorney and current senator with lengthy experience with the Justice Department. He is also known as a pro-business conservative, who on…